POLICE investigating claims of fraud at Caerphilly council’s hierarchy today confirmed two men had their bail renewed.

Chief executive Anthony O'Sullivan and his deputy Nigel Barnett are currently suspended on full pay after being arrested on suspicion of fraud and misconduct in public office.

They were initially bailed by Avon and Somerset Police, who are investigating the controversial top officers' pay rises at the authority.

Mr Barnett had been appointed to run the authority after Mr O’Sullivan had been suspended in March when questions were first asked about senior officers’ pay rises.

Avon and Somerset Police launched an investigation into pay at the authority after a Wales Audit Office report found that hikes of up to 20 per cent were unlawful.

A spokesman on behalf of the police force said: “I can confirm that two men have been rebailed to a date in the new year.”

Mr O’Sullivan was arrested on suspicion of fraud and misconduct in public office after huge pay rises were awarded to 21 senior officials at the authority.

This followed the chief executive awarding himself a rise from £132,000 to £158,000, a move that caused uproar as most staff had been on a two-year pay freeze.

The rises were given in September last year, with Mr O’Sullivan accepting a compromise rise of £5,000 after these came to light in November.